Free Debt Management Advice
Being in debt is an obligation resulting from the borrowing of money. It's certainly
nothing to be ashamed of and it is inevitable that some of us will at some point,
get into financial difficulties. The reasons are often due to a change in circumstances
such as unemployment, illness or a breakdown in a relationship. Credit becomes debt
when you can no longer meet the contractual payments without borrowing further.
When realized, this is a shock and often people panic or simply hope the problem
will go away.
Debt Help Advice
The first step, as many experts agree, is to recognize and admit there is a problem.
Being in debt needs management of your finances to get back on track so find the
correct program for you is essential. Banks consider customers to be in financial
difficulty when a person's income is insufficient to meet reasonable living expenses
and cover financial commitments such a mortgages and monthly bills. They cannot
meet the minimum payments that are required.
Secondly, you must contact your creditors and let them know you are having difficulties.
Work with you creditor and in the first instance, confirm exactly how much it is
you owe. You must start to put together an action plan - if you let things drift
and simply do nothing, you are likely to default and be blacklisted for future credit.
The good news is you can solve your debt problem. It might not be easy or
quick but there is always a way. By their nature, debt needs to be looked at as
a matter of urgency. They compound rapidly over time and can quickly spiral into
trouble. The earlier to start to deal with the debt the easier they are to deal
Debt is not just a finance issue. It feeds into all elements of your life and the
solutions are wide and varied. Whether it's simply cutting your interest costs,
budgeting or challenging the legality of your debts.
Before making any move tackle your debt, you need to get an accurate idea of your
income and out goings. A weekly or monthly personal financial statement should be
complied if your out goings exceed your income:
- It is essential that you review your expenditure and cut down on non-essential items
and spending. Avoid cutting down too much on the basics such as food and energy
bills. Remember that you do need enough to live on and not just to survive on.
- Eliminate the high interest rate store cards and consolidate debts onto a lower
- Be certain that you are getting all the benefits that you are entitled to. All reputable
money advice agencies will do this and you should not have to pay for this advice.
- Keep in communication with your creditors. Let them know what is happening with
you financial situation and send them a copy of the financial statement making it
clear how much you can afford to pay them.
You must make sure you prioritize your creditors and generally deal with the ones
that affect your home first. Once you have dealt with the priority creditors, write
to all you other creditors explaining your situation.
Before long you will slowly get out of debt for good - and be debt free for life.
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